BP reports start of gas production at Azerbaijan's ACG oil field

(Alliance News) - BP PLC on Monday reported the start of non‑associated gas production at the Azeri-Chirag-Gunashli field in the Azerbaijan sector of the Caspian Sea.

"This marks the first-ever commercial gas production operations on ACG, one of the world's largest oil-producing fields," BP said.

The London-based fuel major operates the ACG field.

Partners on the venture include Spring, Texas-based-based Exxon Mobil Corp, alongside the State Oil Company of the Republic of Azerbaijan, Hungary's MOL Group, Japan's Inpex Corp, Turkish Petroleum Corp and New Dehli-based ONGC Videsh Ltd.

"This is a big day for Azerbaijan and for the ACG co‑venturers. ACG has a long and successful history and now, nearly three decades into oil production, the field continues to hold potential to deliver value for the nation and its investors as it starts this new chapter," commented Gio Cristofoli, BP's regional president for Azerbaijan, Georgia and Turkey.

The initial non-associated gas well was drilled last year from the existing West Chirag platform into two priority reservoirs, Qirmaki Upper Sand and Qirmaki Lower Sand, with initial operations focused on the latter.

"Gas and condensate produced from the well will be directed to the Sangachal Terminal via the existing ACG infrastructure," BP said.

Besides producing gas, this is expected to provide data which will be used to assess the potential of full-field development.

ACG's non-associated gas resources are estimated at 4 trillion cubic feet of recoverable reserves and potential upside to 6 trillion cubic feet.

BP shares were up 0.8% to 526.05 pence on Monday morning in London, tracking Brent oil, which rose to USD94.00 a barrel early Monday morning from USD91.62 late Friday.

By Holly Munks, Alliance News reporter

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